List of Benefits Offered to Middle Class Tax-Payers

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Finance Minister, Arun Jaitley presented Union Budget 2015 on Feb 28. Here are few benefits offered to middle class for the fiscal year that begins on April 1.

  • Limit of deduction of health insurance premium increased from Rs 15,000 to Rs 25,000, for senior citizens limit increased from Rs 20,000 to Rs 30,000.
  • Senior citizens above the age of 80 years, who are not covered by health insurance, to be allowed deduction of Rs 30,000 towards medical expenditures. 
  • Deduction limit of Rs 60,000 with respect to specified decease of serious nature enhanced to Rs 80,000 in case of senior citizen. 

List of Benefits Offered to Middle Class Tax-Payers

  • Additional deduction of Rs 25000 allowed for differently abled persons.
  • Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from Rs 1 lakh to Rs 1.5 lakh. 
  • Additional deduction of Rs 50,000 for contribution to the new pension scheme u/s 80CCD.
  • Payments to the beneficiaries including interest payment on deposit in Sukanya Samriddhi scheme to be fully exempt.
  • Service-tax exemption on Varishtha Bima Yojana.
  • Concession to individual tax-payers despite inadequate fiscal space. 
  • Lot to look forward to as fiscal capacity improves.
  • Conversion of existing excise duty on petrol and diesel to the extent of Rs 4 per litre into Road Cess to fund investment. 
  • Service Tax exemption extended to certain pre cold storage services in relation to fruits and vegetables so as to incentivise value addition in crucial sector. 
  • Negative List under service-tax is being slightly pruned to widen the tax base. 
  • Yoga to be included within the ambit of charitable purpose under Section 2(15) of the Income-tax Act. 
  • It is proposed to modify the ceiling on receipts from activities in the nature of trade, commerce or business to 20% of the total receipts from the existing ceiling of Rs 25 lakh.

Read more about: union budget 2015, tax
Story first published: Saturday, February 28, 2015, 17:02 [IST]
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